Preparing and analysing cost reports

TASK-2
Management Accounting

Preparing and analysing cost reports
Scenario of Next plc, multinational clothing company is
selected. It deals in home products and footwear to large
number of buyers.
Gathering information-Next plc will collect all important
information related to cost. Total sales turnover is taken into
account so as to refer number of units sold during particular
time span.

Itemize tangible cost
It includes tangible cost such as
Labour
Material
Other related stock incurred during production process
It assists management of Next plc to keep record related to actual
expenses incurred during particular time span.
Continued...

Contiued...
Categorize intangible cost-Under this part intangible cost will be
recorded such as expenses made for goodwill of business.
Preparing structure of report-Here, production cost, distribution
and selling expenses will be recorded.